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Our Bureau

New Delhi , July 6

India Inc has expressed disappointment over the Government's decision to put on hold, pending further review, all disinvestments decisions and proposals of public sector units (PSUs). It feels that this would send wrong signals about the future of the reforms process in the country.

Federation of Indian Chambers of Commerce and Industry (FICCI) pointed out that disinvestment of PSU shares had played a critical role in the development of the capital market in the country since reforms started in 1991. Sale of PSU shares had unlocked their immense value and the latest decision to put on hold further disinvestments might erode their value in the market. The chamber believed that the Government would review the decision keeping in view the broader interests of the economy and attraction for the global investor.

The Confederation of Indian Industry (CII) expressed concern over the Government's decision. The chamber said that since large public investments are required in critical areas like education, health and infrastructure, Government could face major resource constraints without disinvestments. Assocham felt that disinvestment will generate revenue for the Government to contain its fiscal deficit and also for resource generation for building infrastructure.

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